Devices allow listeners to store, record songs.
The Recording Industry Assn. of America (RIAA) has contacted satellite radio giants XM and Sirius, expressing its worry over new portable players to be unveiled this fall. The devices will allow listeners to record and store songs, according to an informed source.
RIAA declined to comment on the record, but the industry insider says the organization is concerned that the new devices allow broadcast tracks to "become unlicensed downloads" by allowing listeners to "file them away in their own libraries. If you can create your own library, why bother buying a CD or signing up for a subscription service?"
RIAA is reportedly asking XM and Sirius why the copy-and-store feature is essential. Though the new devices are said to prompt consumers to sign up with Napster, "Why would they bother if they can get it for free?" says the source.